As our longtime subscribers know, throughout 2016, the biggest bookstore chain in the United States struggled. During the holidays, the chain reported that comparable-store sales were down 9.1 percent versus 2015. The drop was attributed to various factors, including slower foot traffic in stores, the declining sales of adult coloring books, and no bestselling album by Adele. CEO Len Riggio said at that time, “Fortunately, post-holiday traffic and sales have improved and we are optimistic for the remainder of the fiscal year, and we believe this most unusual retail season may be behind us.”
Apparently not. The latest B&N quarterly earnings report showed a retail sales decline of 7.5 percent. Nook sales (which include devices, ebooks, and accessories) declined by 25.7 percent. B&N stated, “Despite post-holiday sales improvements, trends softened in late January and into the fourth quarter.”
Meanwhile, print book sales as tracked by BookScan in 2017 show that the industry is not suffering that same rate of decline—so B&N, as we’ve indicated many times before, is losing share to its competitors. Furthermore, the new B&N concept stores that feature full kitchens with beer and wine, may not be the saving grace they’ve been purported to be. In a Wall Street Journal interview (subscription required), Riggio said it was “unclear” if the restaurants will be part of the new store prototype; the executive who was overseeing that particular initiative resigned in December.
Bottom line: We were reminded recently (thank you, Richard Nash) that the bookstore chain Indigo in Canada is showing growth, although that growth is from non-book merchandise. (Book sales, at the very least, remain flat at Indigo.) Barnes & Noble’s troubles seem increasingly attributable to a failure of management or leadership. Michael Cader of Publishers Lunch noted (subscription required), “[Riggio] made it clear that he foresaw the current environment many years ago, without explaining why B&N was therefore unable to counteract it.”
Jane Friedman has spent her entire career working in the publishing industry, with a focus on business reporting and author education. Established in 2015, her newsletter The Bottom Line provides nuanced market intelligence to thousands of authors and industry professionals; in 2023, she was named Publishing Commentator of the Year by Digital Book World.
Jane’s expertise regularly features in major media outlets such as The New York Times, The Atlantic, NPR, The Today Show, Wired, The Guardian, Fox News, and BBC. Her book, The Business of Being a Writer, Second Edition (The University of Chicago Press), is used as a classroom text by many writing and publishing degree programs. She reaches thousands through speaking engagements and workshops at diverse venues worldwide, including NYU’s Advanced Publishing Institute, Frankfurt Book Fair, and numerous MFA programs.
